Ms JENNY AITCHISON (Maitland) (22:58): It has been nearly 10 years since the Inquiry into Construction Industry Insolvency in NSW was established after subcontractors were left unpaid to the tune of $1 billion. The Government has done very little to implement the 44 recommendations of the Collins inquiry. At the time only 10 were supported and 13 were not supported. The others were given only in-principle or qualified support. In April 2013 the Government said that it would trial project bank account trusts on Government contracts but it is not proposed at this time to progress the construction trust recommendations, other than retentions more broadly.
In May 2018, 23 subcontractors were owed $7.3 million after the primary contractor on the Woolgoolga to Ballina Pacific Highway upgrades went into voluntary administration. Former Deputy Premier John Barilaro intervened after much advocacy from NSW Labor on this issue, and the subcontractors were eventually paid. Yesterday I spoke to Jo Franklin, one of those subbies, who told me, "Yes, we got paid as part of a one-off rescue package, but it is still happening." I get that this was a civil construction project, but it is still happening in the building industry and in my electorate.
Today FTI Consulting was appointed voluntary administrators, effective immediately, over a number of companies in the Privium Group, also known as Impact Homes, which is Queensland's largest home builder and the eleventh largest in the State. Clients and subcontractors became aware in the last week or so that something was wrong. One of my constituents rang me on Saturday. This problem affects people in Hereford, Lochinvar, Huntlee, Heritage Parc, Port Stephens, Cliftleigh Meadows, Cameron Park, as well as Queensland and Victoria.
Despite all the disadvantages and hurdles that life has put in the way of my constituent, she is a much‑valued and contributing member of my electorate. She fosters children, volunteers, advocates and helps others whenever she can. I have enormous respect for her. She has saved for 30 years to have the opportunity to own a home. She and her husband had dreams of building a five-bedroom house. Now they are paying rent of $700 a fortnight and then another $1,900 a month with no idea when they will be able to move into their house. She told me of another lady who has paid a deposit but now has cancer. She will have to resell the land, which will cost her between $50,000 and $100,000.
Someone else has paid a 5 per cent deposit, but the insurance was not paid so she has probably got no cover. Another constituent said to me, "I have tried calling Privium but can't get through. I can't understand why this is happening. All our supplies have been ordered, so I'm not sure where the issue comes into finishing off our build. We have got the frames, roofing and windows in. The bricks are on site." Good luck with those staying there. Another constituent who paid over $250,000 has had no contact from Privium. These are real people who are on the verge of having their dream homes ripped away from them. Subbies will lose their small businesses and workers will lose their jobs, but no-one will give them answers, certainly not members on the Government side of the House. Over the weekend families were told by icare that there is no triggering event. Today they have been advised that it will be at least 2024 or 2025 before their homes get back on track. It is a disgrace.
My constituent knows of a subcontractor who is owed $210,000 for four slabs alone. Another tradie said to me, "They owe us just under $10,000 for landscaping work. I re-sent invoices again and a final letter of demand. The email addresses no longer exist. It bounces back. This is not the first time. Last year another building company left the country owing us money. As far as I know he lives in Malaysia but has siphoned the company's money into his partner's name and she opened another company and has a manager running it and obviously he gets his money overseas."
What is the business called? I do not know; probably Phoenix Unlimited. That person is asking me, "Where do the subcontractors stand? What assurances do we have? Why do we have to be the ones that lose all the time?" He continued, "These people line their pockets and live high on the hog while the subcontractors suffer and pay taxes. The laws need to change. Subcontractors need to be covered somehow. Why does the Government not open something similar to icare for subcontractors?" What would have happened if, 10 years ago, the Government had listened to the Collins inquiry and put the work in place? The subcontractor goes on, "CEOs of these companies get away scot-free. Most subcontractors can't afford to go to court, so again they get away with it."
All of these people have been left hanging by this Government. They have been left in the dark. After 10 years and a succession of incompetent Ministers, nothing has changed under this Government. Families are still losing their dream homes, subbies are still losing their small businesses and workers are still losing their jobs. There is nothing but loss. Last year they forked out a $28 million loss and millions in dividends. This Government is asleep at the wheel. The Minister deserves to be condemned for allowing this to happen.
